Since no income from the two entities was shown, the issue of s. 10(23FB) was academic. The financials of S showed that it qualified as a venture capital undertaking under the Regulations and therefore, it qualified as a venture capital undertaking for section 10(23FB). Similarly, in so far as investments made in O shares which were not listed on a recognised stock exchange which also carried on business activity in India, nowhere had it been pointed out that these activities were covered in the negative list under Schedule III to the Regulations. Held that investment in this company also qualified as a venture capital undertaking under the Regulations.  Dividend income is exempt. (AY. 2018-19)